Cyprus tax-to-GDP ratio rises to 36.3 percent in 2025

According to data released by Eurostat on Thursday, the ratio of taxes and net social contributions to GDP in Cyprus increased to 36.3% in 2025, rising slightly from the 36% recorded in 2024. Despite this marginal growth, the figure remains below the European Union average, which climbed to 40.7% in 2025, and the euro area average of 41.3%.

Across the European Union, the total revenue generated from taxes and social contributions rose to 7.686 trillion euros in 2025, representing an increase of 401 billion euros compared to the previous year. Member states show significant variance in their tax burdens; countries like France, Denmark, Belgium, and Austria reported the highest ratios, reaching up to 46%. Conversely, Ireland, Romania, and Malta recorded the lowest percentages among the bloc members.

The overall trend across the EU and the euro area indicates a broader increase in tax and social contribution revenues relative to economic output. The data confirms that while Cyprus is following the upward trajectory observed across the continent, its tax-to-GDP ratio remains considerably lower than that of many other European nations, maintaining a more moderate fiscal intake relative to its total GDP.